YOUR CONTRACT

Life insurance under the magnifying glass

UPDATED 20/10/2011
'Isn't life insurance only attractive for my close relatives?'

Not at all. This solution proves to be flexible and very attractive from a tax point of view when you want to grow your wealth, plan your retirement or protect your close relatives. It lets you benefit personally from your savings.

'Isn’t my money blocked for a certain number of years in a life insurance?'
By means of a surrender request you can withdraw a part of the capital invested at any time, even if this is not always advantageous from a tax point of view. Indeed, life insurance is not a savings account: you should think of it more as a long-term investment.

'What about inheritance tax on a life insurance?'
In principle, your life insurance is subject to withholding tax and inheritance tax on the death of isnured. In a certain number of specific cases, it is however possible to reduce or even avoid tax on a life insurance by fully respecting French tax laws.

'Taking out a life insurance policy in Luxembourg, which is not my country of residence, isn’t that just making life more complicated?'
Under European directives on life insurance an insurance company established within the European Union may offer its products and services in all Member States of the EU. This is known as the freedom to provide services.
Taking account of these directives, the tax and contract law applicable to your life insurance policy is determined by your place of residence. Your life insurance is therefore regulated by French tax and contract law, the law to which each national or foreign insurer active on the French market is subject.
However, all the assets eligible for the life insurance policy fall under Luxembourg legislation. All Luxembourg life insurance companies are subject to the supervision of the Commissariat aux Insurances and Luxembourg legislation for all prudential aspects.
You should also be aware that the Luxembourg market is a world renowned centre of financial expertise to which VITIS LIFE makes a considerable contribution.
Each financial, asset and legal situation is unique and has its own specifics. However complex it may be, you’ll find an ‘à la carte’ solution at VITIS LIFE.


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